SoundCloud Says It’s Doing Fine, Looking for New Funding

Soundcloud logo
Courtesy of SoundCloud

SoundCloud would like you to know that it is doing just fine, thank you. The company sent out a statement to this effect following a story in Recode that quoted unnamed sources saying that SoundCloud had been unsuccessfully looking to raise new funding since last summer, and was now considering a fire-sale.

SoundCloud’s statement didn’t dispute the need for new cash, but tried to paint a rosier picture. “The latest Recode article doesn’t accurately portray the current state of the SoundCloud business,” the company stated. “We are actively speaking with a variety of potential investors and other strategic partners.”

SoundCloud hasn’t updated its usage metrics for some time, claiming since 2014 that it has 175 million monthly active users. The company said this week that it was shooting for 2.5x year-over-year revenue growth in 2017.

The Berlin-based music streaming service has raised around $250 million in total funding to date, including $70 million from Twitter last year, at which point it was valued $700 million. Without a new cash infusion, the company may sell itself for less than that, Recode reported this week, with one source telling the website that any bid above $250 million may get consideration.

SoundCloud launched a paid subscription service that combines a Spotify-like catalog with its many millions of user uploads a year ago this month. Last month, the company also introduced an ad-free mid-tier service dubbed “SoundCloud Go.” And just a few days ago, SoundCloud expanded monetization to DJ mixes, meaning that DJs can now share some of the revenue that the company is generating by running ads against their mixes.

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